Is this the bottom for Boeing?
Boeing provides the biggest intrigues for me because of the complexity of issues and challenges it has. It’s almost like an onion, where you can approach the question layer by layer. And the question is probably one that many ask nowadays- how did we get here? And is this the end yet?
And to define what we mean by “here”, is the current stock price of~ $140 dollars from mid $420s a year ago. I think there is this school of thought of trying to buy stocks while “cheap” and when something as thematic as covid19 happens, people tend to focus on themes as well. And Boeing naturally comes to a lot of people’s minds, certainly mine. However, it is a value buy at $140?
The MAX:
First, to talk about Boeing, we have to talk about the MAX, which is the plane model of 2 tragedies, in October 2018, and again in March 2019. The plane was grounded in the same month. Boeing suspended deliveries to airlines but produced another 400 aircraft before temporarily halting manufacturing from January 2020. However, delivery date projection was pushed back multiple times as problems and a culture of concealment, as used in the US Congressional hearing, emerged. In January 2020, an issue was discovered in the software update, further clouding the future of the MAX. Currently, with the FAA taking away Boeing’s delegated authority to certify the MAX, the timeline of…
